I F76/ 123
,1,, AUSTRL A,&
FOR PRESS 12 JUNE 1976
JOINT PRESS STATEMENT GOVERNMENT/ UNION TALKS
Representatives of the Government and the ACTU and other
peak national Trade Union Councils met in Canberra over
the last two days.
The meetings were chaired throughout by the Prime Minister.
The Trade Union representatives were led by the President
of the ACTU, Mr Hawke.
A full list of those attending is attached.
The discussions were wide-ranging, frank and cordial.
A very constructive outcome was a decision to continue
discussions at officer level between the Government and the
peak councils.
It is expected these discussions will be on a continuing basis.
They will cover a number of areas, including:-
an on-going exchange of information on the economic
situation;
manpower policies;
shipbuilding; aboriginal welfare and employment. , a . t4_
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In addition, discussions will also be taking place on
certain technical matters relating to Medibank and possible
appropriate.-modifications to the opetatiol of the Prices
Justification Tribunal.
A number of these discussions will commence next week'.
Both sides recognised the value of the discussions over the
past two days and agreed that it would.. be desirable to have
similar discussions on policy issues of mutual concern
from time to time.
The Economy
The discussions traversed the present state of the economy,
the Government's overall strategies and its assessment of the
future.
There was common concern about the present problems of the
economy and agreement on the fund~ amental objectives to be sought.
These included the reduction of inflation, the resumption of
economic growth and a return to full employment.
Both sides recognised that under the present extraordinary
economic conditions, there is an inter-relationship between inflation
and the level of unemployment.
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The Union representatives sought from the Government a detailed
exposition of its strategies, including their economic and
social implications.
The Government spelt out its strategies for policies to restore
economic prosperity and the analysis of economic developments
on which it is based. In doing so it emphasised that its
policies should not be viewed piecemeal but seen as an
integrated whole.
It believes that the slump in activity and employment, which
accompanied the exceptionally high rate of inflation in
1974-75, has been halted and a tentative recovery begun.
It sees 1976-77 as a year of moderate growth in activity and
employment. Taking the more optimistic side of possibilities,
this employment growth may be sufficient to lead to a gradual
reduction in the number of unemployed.
However, in the Government's view that prognosis could well
prove optimistic unless there is further progress in curbing
inflation and inflationary expectations. It is essentially
because of the continuing inflationary environment that no
marked early decline in unemployment can be categorically
predicted at this time.
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In the* Government's view, any recovery which takes place
without the clear prospect of continuing reduction in the
rate of inflation from its present double-digit level is
likely to be weak and short lived.
While the unions agreed that there were some signs supporting
the Government's view about the recovery of the economy,
they were less confident of this taking place.
The union representatives sought detailed elaboration of the
Government's outlook for the economy. They were particularly
concerned with prospects for employment and real household
disposable incomes.
There were differences of view about the most effective ways
of achieving the commonly shared objectives. The unions
questioned some elements of the Government's approach and put
forward various suggestions by way of alternatives.
Both the ACTU and the Government . agreed on the importance of
reducing unemployment.
The Trade Union movement drew attention to the need for
maintaining real disposable income standards and achieving an
increase in these standards as soon as possible.
It agreed with the Government that increases in real disposable
income throughout the community are related to growth in
productivity and in real output.
The Government for its part noted that this was a question
not only of real award wages but also of cash benefits such as
family allowances, the burden of personal taxation and of
the rate of economic recovery affecting employment and overtime
earnings. The Government was impressed by the views put by the Trade Union
movement concerning a general reduction in taxation whether
direct or indirect.
The Government drew attention to its recent policies covering
income tax indexation and family allowances. These reflect a
significant reduction and redistribution of taxation in areas of need
Further, the Government noted that many sections believe they are
deserving of tax relief. The Government will give full weight to
the views expressed by the Trade Union movement concerning further
relief for individuals as and when economic circumstances permit.
The Government remains committed to policies that will lighten
the general burden of taxation and, in this, its objectives accord
with the views expressed by the President of the ACTU.
The Union representatives acknowledged the relevance of the
magnitude of wage claims in the present circumstances to the processes
of economic recovery, , including the achievement of full employment
and a reduction in inflation.
MANPOWER POLICIES
The unions raised questions relating to the administration
of unemployment benefit, job creation schemes, NEAT and
NAAS; as well as the evolution of effective long-term
manpower policies.
The Government accepted the unions$ views that these should
not be areas of political controversy that immediate
issues should be pursue d with officials of the Department of
Employment and Industrial Relations, and that they should
work out an appropriate framework for wider and regular
discussions involving other Departments.
SHIPBUILDING The meeting discussed the grave situation in the shipbuilding
industry particularly at Newcastle and Whyalla. The
continued existence of the industry is endangered by low,
producti vity and intense competition from imports.
The cost of the existing subsidy is already high.
In J975/ 76 it will exceed $ 42m. and a much higher
subsidy will be needed if orders are to be obtained.
Both short and long term aspects of the problem were discussed
including the need to consider it in the context of the total
transport industry. Establishment of a national shipbuilding
body was considered and it was agreed that the Department
of Industry and Commerce and other Departments would hold
further discussions next week, first with managemecnt and then
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with shipbuilding unions.
MEDIBANK The Government.-explained the background to its decirions
aimed at ensuring universal coverage for health care, of
placing a direct responsibility for health costs on
individuals according to their capacity to pay and of
widening the choice of individuals.
The unions made it clear that they had been strongly opposed
to the Government's original proposals. Although the
changes subsequently announced represented a very
substantial improvement, there were still aspects on which
they sought further clarification. These included the basis
on which Medibank ( Private Insurance) would compete with
-private health funds-and the level of. the. levy..
Again, arrangements were made for discussions next week aimed
at further clarification of the technical issues involved.
The Government indicated that it would shortly be issuing
explanatory literature on the options open to individuals
so that they would be able to make appropriate choices.
The Government indicated that insofar as these changes
resulted in increases in~ the Consumer Price Index, then, for
the purpose of adjustment to award wages for movements in
the Consumer Price Index *= der the wage indexation principles,
the Commonwealth would not be arguing that the index should be
" discounted" for these particular increases.
PRICES JUSTIFICATION TRIBUNhAL
The unions pressed strongly for the maintenance of the
Prices Justification Tribunal, at the same time
recognising that there was scope for some changes in the
existing machinery.
The Government indicated that it was disposed to the
continuation of the Prices Justification Tribunal in an
appropriately modified form. It note d, however, that it
would wish to wait till after its discussions with the
employers on 2 July before reaching a final view.
Meanwhile, arrangements were made for further technical
level discussions between the Government and the unions on
this matter.
INDUSTRIAL LEGISLATION
The unions, while conceding that the legislation on postal
ballots was an improvement on the Government's original
proposals, reiterated in the strongest terms their basic
opposition to the legislation and urged that it should not
be proclaimed.
The Government, while maintaining its view that it wished to
give every member of a union and employer organisation
adequate opportunity to c:.: zcse those who should be responsible
for conductof the affairs Of the organisation, noted the unions' view.
NATIONAL DISCUSSIONS WITH UNIONS CANBERRA 11 12 JUNE 1976
ATTENDANCE
GOVERNMENT: The Rt. Hon. Malcolm Fraser, Prime Minister.
The Rt. Hon. J. D. Anthony, Deputy Prime Minister.
The Hon. P. R. Lynch, M. P. Treasurer.
Senator The Hon. Robert Cotton, Minister for Industry Commerce.
The Hon. A. A. Street, Minister for Employment Industrial
Relations.
The Hon. J. W. Howard, Minister for Business Consumer-
Affairs.
The Hon. R. J. D. Hunt, Minister for Health.
The Hon. P. J. Nixon, Minister for Transport.
Ministers were accompanied by the Permanent Heads of their
Departments. The Chairman of the Public Service Board, the
Chairman of the-Prices Justification Tribunal, the Chairman
of the Medibank Review Committee and the Deputy Governor of
the Reserve Bank were also present.
UNIONS: Australian Council of Trade Unions ( ACTU)
Messrs. R. J. Hawke President
P. Nolan Assistant Secretary
C. O. Dolan Senior Vice-President
J. Roulson Junior Vice-President
Hon. J. P. Ducker, MLC. Executive Member
C. Fitzgibbon Executive Member
E. Williams Executive Member
accompanied by Mr R. Jolly, Mrs J. Marsh, Mr W. Kelty ( Research
Officers) and Mr L. Schurr ( Industrial Officer).
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Australian Council of Salaried Professional Associations ( ACSPA)
Messrs. P. Reilly Federal President
J. Crewe Honorary Treasurer
Council of Australian Government Employee Organisations ( CAGEO)
Messrs. K. Turbet Federal President
R. Gradwell Acting Federal Secretary
accompanied by Mr. I. Oldmeadow, Research Officer.